🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon who won last month's parliamentary vote, has refused to offload his vast corporate assets, while insisting he will address a ethical dilemma that might prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with Czech and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the nation and other central European countries, receiving substantial funds in national and EU farming and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from receiving public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or stay out of public office.

Past Tenure and Present Plans

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to explain how in advance because the issue was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Governing Deal and International Consequences

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme include a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting alliance duties.

The president has previously said he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.